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Microsoft created a gaming division as part of its plan to acquire a company. Phil Spencer, the former head of Xbox, will lead this team as it focuses on gaming across all of the platforms. Spencer is described as the Xboss by fans of the game.
Spencer took over as the head of Microsoft's Xbox division in the summer of 2014, reporting to Terry Myerson. In a sign of how gaming has changed at Microsoft under Spencer, he quickly moved into Microsoft's senior leadership team in 2017: reporting directly to Microsoft CEO Satya Nadella as the corporate vice president of gaming. Spencer has been with Microsoft for more than 30 years and is now the CEO of Microsoft Gaming, which is focused on mobile gaming, the metaverse, and cloud gaming.
Microsoft spent $7.5 billion to acquire Bethesda last year, and is now willing to spend billions on acquisitions to bolster its gaming efforts. Microsoft won't be easy to acquire. The company is struggling to address concerns from employees over sexual harassment allegations. Spencer and his team at Microsoft will have a lot of work to do to make sure that the culture inside of the company is addressed.
In an email to staff today, Microsoft Gaming CEO Phil Spencer said about his new role and the company's gaming efforts.
I welcome you back from the holidays. I would like to thank everyone for their hard work and dedication that has built this business and community. The agreement to acquire the company is very exciting. It is a milestone for our company, our business and our industry. The entire gaming leadership team is very enthusiastic about the opportunity. This morning, we announced that we have surpassed 25 million Game Pass subscribers across console, cloud and PC, a great achievement for all of Team Xbox.
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We all know how dedicated the teams and studios are at the company. Millions of people have enjoyed the legendary games and franchises of that company. We can accelerate our mission to extend the joy and community of gaming to everyone. We have the ability and opportunity to build the most fun and engaging entertainment ecosystems anywhere.
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Microsoft is committed to inclusion in every aspect of gaming, for both employees and players. Individual studio cultures are important to us. Creative success and autonomy go hand-in-hand with treating every person with dignity and respect. All teams and leaders are held to this commitment. We are looking forward to extending our culture of proactive inclusion to the great teams.
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The acquisition is expected to close in FY23, pending regulatory approvals. The business will report to me once the acquisition is complete. We know you will have a lot of questions. The Gaming Leadership Team and I will be answering as many questions as possible at the next Monthly Gaming Update. You can submit your questions on our Team Xbox Yammer. Please refresh our guidelines on social media.
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I am now the CEO of Microsoft gaming. The change is a reflection of the work you are doing to create the best entertainment platform. It is crucial that we operate as a single, unified team because we know how exciting and difficult work we have ahead of us. Jerret West and his marketing team will report directly to me, effective today. Jerret will continue to be a member of Chris' leadership team and will be able to leverage Microsoft's marketing muscle.
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We will have a live broadcast for investors and media at 6 a.m. We will discuss our plans as Microsoft gaming. If you can, please join.
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Phil.
The CEO of Microsoft sent an email to staff about the announcements. The company is looking to develop for XBOX, Microsoft Teams, and beyond, as well as gaming, which is a critical role in the development of metaverse platforms.
Team.
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I am happy to announce that we have an agreement to acquire the company, which is valued at $68.7 billion. One of the largest game publishers in the world, with over 400 million monthly active players, it is home to some of the most popular games of all time, including Call of Duty, Candy Crush and World of Warcraft.
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Since our earliest days as a company, gaming has been important to Microsoft. As the digital and physical worlds come together, it will be a critical role in the development of metaverse platforms.
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We believe we have an incredible opportunity to bring the joy and community of gaming to everyone on the planet, and we will invest and innovate to create the best content, community and cloud for gaming. We want to make it easier for people to connect and play great games wherever they want.
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I am grateful for the hard work and commitment of the gaming team, and this agreement is a testament to their impact. Over the past few years, we have expanded our content and become leaders in game subscriptions and cloud gaming. It was great to see the response from fans and to read the great reviews of our new titles.
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Phil Spencer will become CEO of Microsoft gaming. The business will report to Phil when the acquisition closes. We want to create a more diverse and inclusive culture for our new colleagues at the company and make sure that everyone feels comfortable in the workplace.
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I will be having a live event with investors at 6 a.m. Bobby Kotick, the CEO of Activision Blizzard, will be with Phil and Amy to share more details about our big ambitions for gaming. If you can, please join.
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Satya was a person.
The article was updated with a memo from Microsoft CEO Satya Nadella.
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